FREE Fundamentals of Earned Value Management Questions and Answers
Can procurement use Earned Value Management?
Earned Value Management (EVM) can be used in procurements and is often applied to monitor and control the performance of contractors or vendors involved in a project. EVM provides a systematic approach to measuring project performance in terms of cost and schedule, and it can be extended to procurement activities as well.
What didn't work: Budget: $120 x $12 per unit for 10 units. Actuals:$192 divided by 12 units at $16 each What was the overrun due to?
Together, the price and usage differences contributed to the overall budget overrun of $72 ($48 + $24) in the project. To address such overruns in the future, it is important to closely monitor and control both the cost per unit and the quantity of units used, ensuring that they align with the planned budget and quantities.
What does LOE stand for
LOE stands for Level of Effort. It is a term commonly used in project management to estimate the amount of work required to complete a task or project. LOE represents the overall amount of time, resources, and effort needed to accomplish a particular activity or objective. It is usually expressed in terms of hours, days, or other units of time. The level of effort estimation helps in planning and allocating resources, determining project timelines, and assessing the feasibility of project goals.
What are the three categories?
Please select 3 correct answers
Major (High Risk), Minor (Low Risk), and Routine—are often used in procurement management to classify the level of risk associated with procurement activities. These categories help in determining the appropriate procurement strategies, approaches, and controls.
The categorization of procurements into major, minor, and routine helps in assessing the level of risk and determining appropriate procurement approaches, it is important to note that the use of Earned Value Management (EVM) in procurements is not directly related to these categories. EVM is a project management technique that focuses on measuring project performance in terms of cost and schedule and can be employed across different types of procurements, irrespective of their risk categorization.
How many elements does the Control Account Plan (CAP) have?
Different organizations or project management methodologies may have variations in terminology or specific elements, these elements are generally considered essential components of a Control Account Plan.
Which of these processes doesn't involve using earned value when making project purchases?
The four generic categories" does not relate directly to employing Earned Value Management (EVM) on project procurements. The categorization of procurements into four generic categories typically refers to the classification of procurement types based on the nature of the goods or services being procured. This classification helps in understanding the procurement strategy and determining appropriate contractual and management approaches.
What is CPM stand for?
CPM stands for Critical Path Method. The Critical Path Method is a project management technique used to plan, schedule, and manage activities within a project. It helps in determining the most critical activities and the sequence in which they need to be performed to ensure the project is completed on time.